Maruchiyo Yamaokaya Corporation (3399) AI Stock Analysis

• Market Cap: ¥72.03B
• Dividend Yield: 0.14%
• Average Volume (3M): 238.69K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.73
• Revenue Growth: 24.70%
• EPS Growth: 26.13%
• Country: JP
• Employees: 654
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 20,112,800
• 10 Day Avg. Volume: 207,600
• 30 Day Avg. Volume: 238,686
• PEG Ratio: 0.59
• Price to Book (P/B): 6.38
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 20.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,713.00 ▲(21.54% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong financial performance (rapid growth, expanding profitability, improving cash generation, and deleveraging). Valuation is supportive with a low P/E, but near-term technical signals are weak (below key moving averages with negative MACD and low RSI/Stoch), which meaningfully offsets fundamentals.

Positive Factors

Strong revenue and profit expansion

Sustained, multi-year revenue and net income acceleration indicates the business has scaled core operations and captured market share. High gross margins around 70% imply durable unit economics that support operating leverage and cushion against input-cost swings, aiding profitability over the next several quarters.

Material improvement in cash generation

Marked improvement in operating and free cash flow strengthens reinvestment capacity and financial resilience. Robust FCF supports capex for openings, working capital, and debt reduction while enabling strategic choices without depending on external funding across the 2–6 month horizon and beyond.

Deleveraging and stronger balance sheet

Significant equity build and falling debt materially improve financial flexibility and lower default and refinancing risk. A stronger balance sheet enables more disciplined expansion, supports cash flow variability, and reduces interest expense sensitivity as the company executes medium-term growth plans.

Negative Factors

Margin & cash-flow volatility

Although recent profitability and cash conversion have improved, past swings in margins and very low FCF in 2023 show execution and cost-structure sensitivity. This raises the risk that margins and cash conversion could revert during cost inflation or operational missteps in the medium term.

Concentrated single-channel revenue

Heavy reliance on company-operated dine-in locations concentrates exposure to foot-traffic trends, local disruptions, and regional demand shifts. Limited diversified revenue streams reduce resilience and scale optionality, making long-term growth more dependent on openings and same-store performance.

Very high ROE may normalize

Extraordinarily high ROE reflects rapid profit recovery and a previously small equity base; as equity grows and growth moderates, ROE is likely to mean-revert. Normalization would reduce return expectations and could expose the business to pressure to maintain high growth to justify prior margins.

Maruchiyo Yamaokaya Corporation Business Overview & Revenue Model

Company Description

Maruchiyo Yamaokaya Corporation operates ramen restaurants in Japan. It operates restaurants under the Yamaokaya brand name. The company was founded in 1980 and is headquartered in Sapporo, Japan.

How the Company Makes Money

The company primarily makes money by selling food and beverages directly to customers at its “Ramen Yamaokaya” restaurants. Its core revenue stream is in-store dining (and any takeout sales where offered), driven by transaction volume and average spend per customer from ramen offerings and side dishes. Earnings are supported by operating multiple locations under a unified brand, enabling standardized menus, store operations, and procurement. Information on additional material revenue streams (e.g., franchising royalties, packaged food sales, licensing, or specific external partnerships) is null.

Maruchiyo Yamaokaya Corporation Financial Statement Overview

Summary

Strong multi-year inflection with sharp revenue growth (15.1B in 2022 to 43.0B in 2026), meaningful expansion in operating profit and net income (0.39B to 3.69B), and much stronger operating/free cash flow (OCF 0.75B to 5.14B; FCF 0.36B to 3.14B). Balance sheet also improved via equity growth and deleveraging, though historical margin and cash-flow volatility remain key risks.

Income Statement

The company shows a strong growth and profitability trajectory, with revenue rising sharply from 15.1B (2022) to 43.0B (2026) and accelerating further in 2026 (+62% year-over-year). Operating profit and net income expanded meaningfully over the period (net income from 0.39B in 2022 to 3.69B in 2026), indicating improving scale and operating leverage. A key strength is consistently high gross profitability (around ~70% gross margin in the years provided), while the main watch-out is that margins were much thinner in earlier years (notably 2021–2023), highlighting sensitivity to cost pressures and execution risk despite the recent step-up.

Balance Sheet

Balance sheet strength improved materially as equity expanded from 1.9B (2021) to 10.1B (2026), while total debt declined from its peak levels (about 3.3B in 2023 down to 1.8B in 2026). This has driven a clear deleveraging trend (debt-to-equity improved from ~1.45 in 2021 to ~0.37 by 2025), supporting financial flexibility. The trade-off is that returns on equity have been very high (e.g., ~37% in 2024 and ~42% in 2025), which is a strength but can also normalize as the equity base grows and growth moderates.

Cash Flow

Cash generation strengthened substantially, with operating cash flow rising from 0.75B (2021) to 5.14B (2026) and free cash flow increasing from 0.36B (2021) to 3.14B (2026). Free cash flow growth was strong in recent years (including +44% in 2025 and +171% in 2026), supporting reinvestment capacity and balance sheet improvement. The main weakness is historical volatility: free cash flow was thin in 2023 (0.14B) and earlier conversion of earnings into cash was modest (free cash flow relative to net income was ~10% in 2023, improving to ~56% in 2025).

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	26.49B	43.00B	34.59B	26.49B	18.68B	15.12B
Gross Profit	18.27B	29.21B	23.73B	18.28B	13.05B	10.71B
EBITDA	2.63B	5.35B	4.37B	2.66B	983.37M	744.79M
Net Income	1.43B	3.69B	2.83B	1.43B	413.79M	386.27M
Balance Sheet
Total Assets	11.17B	18.28B	14.46B	11.17B	8.46B	6.70B
Cash, Cash Equivalents and Short-Term Investments	2.77B	6.19B	3.96B	2.77B	2.13B	1.53B
Total Debt	2.94B	1.82B	2.55B	2.94B	3.27B	2.70B
Total Liabilities	7.30B	8.15B	7.79B	7.30B	6.00B	4.47B
Stockholders Equity	3.87B	10.13B	6.67B	3.87B	2.46B	2.23B
Cash Flow
Free Cash Flow	1.20B	3.14B	1.75B	1.20B	137.87M	388.41M
Operating Cash Flow	2.44B	5.14B	2.97B	2.44B	1.36B	969.39M
Investing Cash Flow	-1.37B	-2.00B	-1.32B	-1.37B	-1.29B	-630.21M
Financing Cash Flow	-466.71M	-953.13M	-497.15M	-466.71M	499.30M	-239.44M

Maruchiyo Yamaokaya Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3055.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3399, the sentiment is Positive. The current price of 3055 is below the 20-day moving average (MA) of 3670.00, below the 50-day MA of 3474.07, and below the 200-day MA of 3157.81, indicating a neutral trend. The MACD of 1.18 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3399.

Maruchiyo Yamaokaya Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3399	75 Outperform	¥72.03B	17.53	―	0.14%	24.70%	26.13%
2705	66 Neutral	¥50.32B	39.57	―	0.17%	15.53%	-26.93%
8160	63 Neutral	¥70.49B	18.73	―	1.89%	1.49%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3198	60 Neutral	¥50.21B	74.59	―	1.30%	2.90%	-26.37%
8200	59 Neutral	¥57.41B	52.27	―	0.56%	7.52%	3.37%
3395	57 Neutral	¥67.07B	17.62	―	1.95%	23.52%	-13.42%